Executive Summary
Ethics, in general, means learning what is right and what is wrong at the workplace, and right can be defined and justified in several ways (Schroeder). When it comes to ethics, nothing is straight forward a right action is based on justification which helps businesses handle dilemmas effectively. As a result, there are many ethical principles and theories which guide business management, especially when it comes to business dilemmas and decision making. Applying ethics in businesses has various advantages for all parties involved. These apply to all businesses, both profit and non-profit-making businesses. One advantage is that ethical principles help companies navigate dilemmas and make the best decision based on the needs of the business and the consequences of the actions being taken. There is no moral compass to state what is right or wrong in business but focus on each case’s positive and negative implications and determine the best way out of the situation (Schroeder). Another advantage is that companies make choices for the greater good of the community because they stress managers ensure all involved parties benefit from the decisions made based on ethics.
Applying ethics also helps develop an ethical culture in the business since the firm’s development and values follow. The firm also forms its norms and values based on moral principles, which help define what is wrong and what is right. Over time, some of these ethical decisions become part of the organization’s culture and moral values. Ethics also help employees gain skills because through training and experience in the business, they learn ethical practices, and thus, they can apply these skills at work and even in other aspects of their lives (Schroeder). In this journal, three different articles consist of summaries and discussions of ethical issues in business management. Three main topics are discussed in the paper. They are; diversity, business Vs. State concerning applying ethics and quality customer services. These are decisions that organizations have to make and may differ from one business to another. As a result, there is a need to apply ethical principles to analyze the dilemmas and issues presented in each case and then determine if the course of action taken is right or wrong.
Article
Summary
The article ‘What happens to diversity at work in the context of a toxic triangle? Accounting for the gap between discourses and practices of diversity management by Fatma Küskü, Özlem Aracı, and Mustafa F. Özbilgin is a research article conducted in Turkey to investigate issues related to diversity in organizations. Many countries with advanced democracies have become globalized and so have the institutions within these countries. However, this comes with ensuring equality (Küskü, Fatma, et al. 555). The study is set to investigate a case where there is hyper-deregulation in voluntary diversity. Diversity in a workforce is related to ethnicity, gender, sexual orientation, and disabilities.
A survey carried out in Turkey with 792 employees indicates that when diversity is left unattended such that neither organization nor a country is held responsible, there is the concept of the toxic triangle, which has three factors (Küskü, Fatma, et al. 568). One is that there is diversity is hyper-deregulated in cases where there are no legal guidelines on equality. The second factor is organizations taking part voluntarily without taking responsibility, while the third is the lack of supportive discourses for diversity. Using Turkey as a case example, the research demonstrates how when diversity is abandoned. There is a discourse and a toxic triangle of diversity. The voluntaristic approach in various countries results in harmful outcomes in terms of equality and liberty. These are core to economic and social life, and lack of diversity sidelines positive effects due to lack of a positive work environment.
Ethical dilemma and the possible impact on the business, stakeholders, and society at large
The dilemma, in this case, is whether organizations should be liberated and deregulated when it comes to diversity. Diversity means that the government, organization, or legal approaches have to interfere with the business liberties to control the three effects of liberation. This control has financial and economic benefits to an institution and creates discourses in a business such as the need for a new framework to ensure equality. However, in areas where diversity is observed, it is due to fear of legal actions but not genuinely wanting to create equality. Hence, the arising issue is studying an area where there is uncontrolled liberation of businesses and observing their views on diversity within organizations. Therefore, the issue at hand is whether diversity and equality can be achieved in a place where the community is exposed to the toxic triangle of voluntarism, deregulation, and no supportive arguments.
Based on the Dilemma, a country that operates its business in uncontrolled liberation, businesses operate mainly based on merit. Such a business is easy to run and has less external interference. However, organizations with no regulated diversity result in flaws and limits business achievements in general. On the other hand, businesses that observe diversity condone inequality and encourage social justice, which increases a business’s chance of success concerning financial and economic benefits. Such firms have a more inclusive environment and have embraced more sophisticated business mechanisms which have a higher chance of success.
Application of Ethical Principles
This article applies the theory of deontology, which focuses on principles of equality by having a moral intent and using a better path to have ethical conduct. In this theory, there is more focus on doing the right thing than achieving the correct result. Similarly, embracing diversity results in a more complex framework in this dilemma but is still preferred even when the liberated business approach is much easier (Küskü, Fatma, et al. 569). Nevertheless, all organizations have the duty to ensure equality and diversity for all people. The Deontology theory requires ensuring that the choice made is of universal benefit to all people. Similarly, in this case, the researchers conclude that diversity is essential to an organization’s outcome and is the better choice because it creates better results for the company and also a better working environment for employees.
Evaluation of how the Dilemma was Handled
The study handled the issue by studying Turkey, a liberal region for businesses where organizations embrace diversity and equality voluntarily. In the research outcomes, it is clear that the organizations are exposed to the toxic triangle of diversity and thus unable to attain equality and diversity in businesses. The research shows there is still a lot needed to achieve diversity globally and inclusion for all people. The discussion raises a lot of questions related to diversity and equality in organizations. Researchers in this article mentions that many countries which observe diversity do so as a way of obeying the law and not because they understand the importance of diversity. Thus, there is the question of whether there is a need to increase awareness and enable businesses to take responsibility without states monitoring them.
Recommendations
The Ethical dilemma, in this case, is whether organizations can practice diversity when exposed to the toxic triangle of voluntarism, deregulation, and lack of supportive arguments despite their advantages. To ensure that diversity is embraced in a given region, the three issues related to a toxic triangle should be avoided by controlling a business’ liberation and regulations on diversity and equality. This is based on the outcome that the three items in the toxic triangle cannot co-exist with diversity in an organization. Therefore, using the government and other legal approaches, the exposure can be avoided effectively. The advantages of removing the three toxic factors of the triangle mean that there will be a more positive work environment interested in social justice and a supportive environment. However, embracing diversity will embrace more complex organizational frameworks, and the shift is quite challenging and requires extra resources. The organizations and government will need to sensitize people by ensuring that they understand the importance of workforce diversity.
Case Study
Summary
The article “Unethical practices in the Slovak business environment: Entrepreneurs vs. the State?” is a case study written by Anna Remisova and Anna Lasakova, which focuses on unethical actions related to businesses in Slovakia (Remisova and Lašáková 78). It is qualitative research aims to detect any corrupt business practices in the area. It is a case study of business practices in Slovakia which are considered unethical. There has always been resentment between businesses and the state of Slovakia due to harsh competition around the world, which hardly translates to meeting legal obligations or socially responsible behavior. As a result, the firms are always fighting against harsh legal obligations that limit them in the competition, especially small businesses trying to build ethical infrastructures.
The paper focuses on finding the negative attitude of businesses towards the country by pointing towards the lack of ethics in institutions. Ethics ensures fair practice and responsibility and value for other business entities. A state such as Slovak influences ethical business practices either directly or indirectly and also has a part to play in handling issues related to corruption in businesses and the state. The findings focus on the relationship between Slovak and companies and their attitude towards each other (Remisova and Lašáková 89). The paper indicates a lack of self-reflection concerning ethics due to corruption, especially with the state. The case study concludes that there is a need for the business to form partnerships with the state to develop a basis for ethics in business and still understanding the roles and responsibilities of non-governmental institutions.
Identification of the ethical Dilemma and the possible impact on the business
The ethical issue in this case study relates to the need for businesses to take up ethical responsibilities and their social responsibility to all stakeholders, including the general public and the government. The state of Slovak has defined ethical practices which ensure socially responsible behavior, and businesses within the state are expected to observe these ethics in their operations and decision-making. However, many companies, especially the small ones, experience a lot of competition and thrive in harsh battlefields. As a result, they have a terrible relationship with the country since they have to choose between thriving and being ethical. Many businesses find themselves in a situation where they have to choose between meeting obligations or remaining relevant in the competition and survive.
The dilemma is that if an entity chose to be ethical, they have to ensure that the business structure includes ethics that guide them in decision-making and running of the business. Ethics require firms to consider the greater good for all and comply with all legal obligations required, which translates to socially responsible behavior. However, this risks the ability of the business to cope with competition because they have to play fair. On the other hand, by being unethical, the industry has a higher chance of success in the competition because they work with their obligations and have no limitations to specific actions or decisions by state laws. This enables the business to be equally harsh in the competition and leading in the market. However, unethical practices put the company against other companies due to fierce and unfair competition ((Remisova and Lašáková 90). Also, businesses that do not follow ethical practices always have a bad relationship with the government.
Application of Ethical Principles
In this case, the theory of utilitarian ethics is evident. Ethics focus on the greater good of the higher number of people at the expense of individuals an entity considered to be the minority (Schroeder). The theory of utilitarianism focuses on the results that are deemed to bring out the best in society and maximize people’s pleasure. This, therefore, means that business managers in Slovak have to consider the maximization of the satisfaction of people in the community. This is made possible by businesses focusing on integrating decision-making processes with the observation of ethics and fulfilling their legal obligations. This is despite potential losses the company may experience in trying to accomplish its legal obligations to the community ((Remisova and Lašáková 83). Thus, the principle of the greater good agrees with the conclusion of the case study that businesses require to take up their ethical responsibilities.
Evaluation of how the Dilemma was Handled.
The paper concludes that ignoring ethics in business management has a negative effect on many bodies, including the business itself, due to corruption and increased illegal approaches in business operations. The dilemma was handled by comparing both sides of the issue. The researchers discuss business operations in Slovak state in cases where ethics are observed in line with the state’s guidelines and unethical practices where the business operates against the state’s policies. By comparing the consequences of the two instances, the paper concludes in favor of using ethical practices in business that align with the state’s requirements. Many companies are not doing anything to resolve the situation and thus keep colliding with the state. Apart from research on the dilemma, the paper also addresses the attitude of businesses towards the state. The report further explains the need for companies to fulfill their responsibilities and develop business ethics.
Recommendation as to how the Ethical Dilemma should be Resolved.
Many businesses have a negative attitude towards business ethics and state-level responsibilities. However, companies are required to apply ethics in their operations and decision-making as their commitment and create equality in the competitive environment. This makes it possible to play fairly with no corruption or finding easy ways to bypass legal requirements. To solve this dilemma, people need to understand the importance of employing ethics in business and what they stand to gain by developing these business ethics. Some of the advantages include a good relationship with the state, long-term business gains, good relations with the community, and a positive business environment. However, one disadvantage of this approach is that the decision’s made are more complex and require businesses to make sacrifices.
Press Release
Summary
The press release on “Car Guard Trevor Smith Explains the Importance of Customer Service” is an article that highlights some of the advantages of ethical business operations, such as good customer service. The Car Guard Trevor Smith gets many positive results due to the quality services offered to their clients. Most of their clients also tend to refer others and become long-term clients to the organization. He explains that when clients receive quality services, they are highly likely to purchase the products and spend their money on their services. He also says that a client’s happiness and satisfaction are essential and are a huge determiner for business profits (24-7pressrelease.com).
Car Guard Trevor Smith shares ways in which businesses can improve their services and relationship with clients. The first tip is familiarizing with the products being sold such that one can easily explain all the details related to the products to clients. Then one should be genuinely friendly and pleasant, which helps the client feel comfortable. The third tip is being attentive, which helps ensure the right services are offered and promptly. The final information is being a problem solver where the team should be equipped and trained to handle any unavoidable challenges that arise in the business.
Identification of the ethical issue and the possible impact on the business
The ethical issue, in this case, is related to customer satisfaction which, when observed, plays a significant role in the success of the business. Car Guard firm has experienced such success due to their excellent services to clients. This is something the industry has achieved over time and has helped the company’s profits grow effectively since this firm aims to exceed client expectations (24-7pressrelease.com). Many businesses try to limit their services and products to save on the cost of production, which is not advisable because primary means low quality, low chances of making profits, and inability to form long term relationships with clients who value quality.
A business that goes out of its way to ensure a client gets the best possible services has higher chances of making profits and forming long-term relationships with clients because they are satisfied. Better services also impress the customer who feels that they get value for money by receiving these services despite the charges. On the other hand, poor customer service means that the chances of business success are minimal since the client does not believe in the product or service offered. In this case, the client does not feel comfortable or valued, and hence their chances of coming back a second time are minimal. Another thing is that poor services make it impossible to achieve success or even meet the client’s needs (24-7pressrelease.com).
Application of ethical principles
This article applies two principles of ethics which include virtue ethics and deontological ethics. Virtue ethics in business need one to understand factors related to sound decision-making, which help ensure ethics in business are well preserved. These create the virtue of loyalty from the clients and the public. The case presented in the press release encourages enterprises to focus on creating better relations with clients and the public. A business needs to employ virtue ethics which is most important to their clients. An example, in this case, is that of offering excellent services such that they surpass their expectations. The other ethical principle is deontological ethics, which argues that human beings should be treated with respect and dignity because they have the right to be treated. These duties, which are to all people as explained in principle, are used as a decision-making tool in business. In cases where there is a dilemma, then all they do is refer to this principle which supports treating people accordingly by playing their part in ensuring the clients are satisfied. In this case, the right thing is the business should focus on the rights of the customers.
Your assessment of how the ethical issue
The issue is reported like facts that people are supposed to follow to achieve success and desired profits in business. Cr Guard Trevor Smith believes that the key to success is how quality customer service. Thus, the information is brought out like advice to other companies, especially those that relate to offering client’s services. The idea is that the Car Guard business has achieved great success due to excellent customer service, which can help improve other firms effectively. The tips given conclude that business ethics are a requirement when handling clients, and this helps enhance the relationship between the business and clients and improve the outcomes of the company. The paper also notes that these services did not matter the quality of products. The ethical matter is explained using an example where the business has already implemented these measures and experienced success and is now recommending other companies to use these approaches, which are guaranteed to result in success (Schroeder).
Recommendation as to how the Ethical Dilemma should be Resolved.
The ethical issue at hand is that businesses need to do more than what is required to ensure client satisfaction. Companies have to invest in the success of the firm by providing that they offer quality customer services. Despite the resources needed, ensuring a client is happy ensures that they improve their chances of returning and increasing the business profits. Quality customer service is required as much as the service or product offered ad thus, when placed together, the results are excellent. Therefore, the tips provided in this case have worked for the Car Guard business, and it is worth trying and is expected to bring in a lot of profit. The advantage of using this approach is that it has already been used first hand thus based on facts. However, this outcome may be unique to this business and not bring in the same results in other companies.
Works Cited
24-7pressrelease.com. “CarGuard Trevor Smith explains the importance of customer service.” 24-7 Press Release Newswire, 24 July 2021, www.24-7pressrelease.com/press-release/483430/carguard-trevor-smith-explains-the-importance-of-customer-service?swa=Business%2BManageMent.
Küskü, F., Aracı, Z., & ÖZbilgin, M. F. (2020). What happens to diversity at work in the context of a toxic triangle? Accounting for the gap between discourses and practices of diversity management. Human Resource Management Journal, 31(2), 553–574. https://doi.org/10.1111/1748-8583.12324
Remišová, A., & Lašáková, A. (2020). Unethical practices in the Slovak business environment: Entrepreneurs vs. the State? Ethics & Bioethics, 10(1–2), 78–95. https://doi.org/10.2478/ebce-2020-0002
Schroeder, Karisa. “3 Reasons Why Business Ethics Is Important | University of Redlands.” Redlands, School of Business Blog, 2019, www.redlands.edu/study/schools-and-centers/business/sbblog/2019/may-2019/3-reasons-why-business-ethics-important/.
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